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Overlooking public fury at the payouts, Barclays president Bob Diamond urged Britons to be 'proud' of having such a successful bank.

He and chief executive John Varley said they have agreed to sacrifice their personal bonuses this year in the light of the 'intense public interest and concern' over bankers' pay.

But Mr Diamond will still walk away with £22million in shares from December's sell-off of its Barclays Global Investors division - a windfall City minister Lord Myners described as 'grotesque'.

Barclays announced 'terrific' record profits of £11.6billion today

One of the world's highest-paid financiers, Mr Diamond is thought to be worth well in excess of £100million.

In the past he has described his perks and bonuses, which often total more than £ 20million a year, as 'appropriate'.

The average salary at his bank, including branch staff and cleaners, is just £16,500 per year.

Mr Diamond yesterday urged the public to celebrate the bank's 'remarkable' financial comeback as it announced plans to double bonuses.

He said that people should be 'immensely proud' that Barclays Capital was the number one in the world for bond trading and asked why there was always an 'edge' to questions about bankers' pay.

'The facts are this is a remarkable story from a UK bank,' he told the Guardian.

'There has been anger and resentment because a number of banks failed. Successful banks are also angry that bankers failed.

'For whatever reason, we are in a tremendous focus about compensation.

'It's not something we like. We have to continue to drive the business. We've all got to get back to a position where we understand strong and successful banks.'

Mr Varley insisted the bank cared about its public image.

'Of course we care. How can a bank, any bank around the world in circumstances where the system has been bailed out by the Government... say they wouldn't care?

'I hope you can see a bank that is sensitive to the mood of the world.'

The Government's introduction of the bonus tax in the Pre-Budget Report seems to have had little effect on Barclays's decision to award £1.5billion in cash bonuses this year and a further £1.2billion in long-term cash and share awards to 5,000 of its top staff.

There are signs that Britain's other major lenders are planning similar rewards, despite Government demands that they link the payouts to longer-term performance.

Such defiance has led MPs to call for the big banks to be broken up, with high street branches separated off from their 'casino' investment arms.

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LibDem Treasury spokesman Lord Oakeshott said: 'The pathetic bonus tax is not stopping these outrageous rewards, it only scratches the surface of the problem. We need to break up the banks and stop them gambling off the back of the taxpayer guarantee.'

The Trades Union Congress called for a 'Robin Hood tax' on financial transactions, to ensure banks help repay for the damage they have caused.

Barclays chairman Marcus Agius defended the bank's bonuses, saying: 'We know that the impact of the credit crunch and of the subsequent recession has made the lives of millions of citizens and thousands of businesses more difficult.

'We know that it's our obligation to provide support in ways that are responsible.'

But yesterday the Daily Mail reported research showing six out of ten firms have been turned down for credit by banks.

Tory Treasury spokesman Philip Hammond said: 'Gordon Brown said that his bank bonus regulation would be the toughest in the world, but instead we're seeing the return of massive bonuses when businesses still can't get access to credit.'

Barclays said it would be paying £225million to the Treasury this year as a result of the windfall tax on bonuses over £25,000. It is likely to pay up to £200million over the coming years in further payments for the bonus tax.

But Mr Varley appeared to suggest there is little that the Government can do to make life difficult for bankers.

He said it was 'very unlikely' that the 'fundamental competitiveness of Barclays would ever be threatened by the decisions of the Government'.